Finding 615230 (2022-004)

Significant Deficiency
Requirement
N
Questioned Costs
$1
Year
2022
Accepted
2023-09-27

AI Summary

  • Core Issue: The Board failed to include required prevailing wage rate clauses in two construction contracts funded by federal COVID-19 assistance.
  • Impacted Requirements: Noncompliance with the Davis-Bacon Act, which mandates that contracts over $2,000 include prevailing wage rates and certified payroll submissions.
  • Recommended Follow-Up: Implement controls to ensure all future contracts comply with the Davis-Bacon Act and establish a process for verifying weekly certified payrolls from contractors.

Finding Text

Title 29, U. S. Code of Federal Regulations, Part 5, Sub-Part A Davis Bacon and Related Acts Provisions and Procedures (the ?Davis-Bacon Act?), requires that any construction contract in excess of $2,000 that is funded wholly or in part by federal funds include prevailing wage rate clauses. The laborers and mechanics employed by contractors or subcontractors to work on construction contracts in excess of $2,000 financed by federal assistance funds must be paid wages not less than those established for locality of project (prevailing wage rates) by the Department of Labor (DOL) and the contractor or subcontractor must submit to the nonfederal entity weekly, for each week in which any contract work is performed, a copy of the payroll and a statement of compliance (certified payrolls). During fiscal year 2022, the Board entered into two construction project contracts that did not include prevailing wage rate clauses. As of September 30, 2022, the Board had expended $266,813.05 of COVID-19 Education Stabilization Funds (Elementary and Secondary School Emergency Relief) on these projects. The Board did not have controls in place to ensure the Davis-Bacon Act wage rate requirements were included in construction contracts, therefore, the construction project contract was awarded during the fiscal year that did not include prevailing wage rate clauses nor did the contractors submit weekly certified payrolls to the Board. As a result, the Board is not in compliance with the Davis-Bacon Act as it pertains to wage rate requirements.

Categories

Questioned Costs Matching / Level of Effort / Earmarking Special Tests & Provisions

Other Findings in this Audit

  • 38788 2022-004
    Significant Deficiency
  • 38789 2022-004
    Significant Deficiency
  • 38790 2022-003
    Significant Deficiency
  • 615231 2022-004
    Significant Deficiency
  • 615232 2022-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
10.555 National School Lunch Program-Cash Assistance $4.52M
84.425 Education Stabilization Fund - Covid-19 American Rescue Plan - Elementary and Secondary Schools Emergency Relief Fund $3.79M
84.425 Education Stabilization Fund - Covid-19 Elementary and Secondary School Emergency Relief (esser) Fund $2.56M
84.010 Title I Grants to Local Educational Agencies $2.27M
84.027 Special Education_grants to States $1.93M
10.558 Child and Adult Care Food Program $1.57M
10.553 School Breakfast Program $1.41M
84.367 Supporting Effective Instruction State Grants $451,945
10.555 National School Lunch Program-Non-Cash Assistance (commodities) $380,412
10.582 Fresh Fruit and Vegetable Program $289,402
84.027 Covid-19 American Rescue Plan Act - Special Education - Grants to States $163,041
10.555 Covid-19 National School Lunch Program-Cash Assistance $161,262
84.424 Student Support and Academic Enrichment Program $154,801
84.425 Education Stabilization Fund - Covid-19 Governor's Emergency Education Relief (geer) Fund $131,249
84.048 Career and Technical Education -- Basic Grants to States $130,079
84.358 Rural Education $127,666
84.173 Special Education_preschool Grants $83,066
10.559 Summer Food Service Program for Children $76,971
10.558 Child and Adult Care Food Program - Non-Cash Assistance (commodities) $42,262
10.665 Schools and Roads - Grants to States $27,511
10.560 State Administrative Expenses for Child Nutrition $18,823
84.365 English Language Acquisition State Grants $9,355
84.173 Covid-19 American Rescue Plan Act - Special Education - Preschool Grants $6,504
10.649 State Pandemic Electronic Benefits Transfer (p-Ebt) $5,193
96.001 Social Security Disability Insurance $1,500